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Britain’s economy grew by 0.4pc in the third quarter and by 1.7pc on the year, an unexpectedly strong result which indicates the UK is proving more resilient than feared.

Sustained household spending growth helped drive the increase, as well as expansions in the accounting, recruitment and retailing sectors which were strong performers in the dominant services industry.

Manufacturers were also boosted by rising exports and sales of new car models, the Office for National Statistics said.

Economist Alan Clarke at Scotiabank said this bodes well for 2017’s overall GDP growth, defying expectations of a serious slowdown.

He had previously forecast growth of between 1.5pc and 1.6pc, but has now upgraded...